12 Common Ways Freelancers Miss Out on Tax Savings in 2025/26
Self-employed in the UK? You're probably overpaying tax — here's how to fix that.
Every year, thousands of freelancers leave £1,000+ on the table by missing easy tax deductions. Whether you're a sole trader or a one-person limited company, HMRC allows you to deduct genuine business costs before tax is calculated.
The trick? Knowing what counts — and what freelancers often forget.
In this guide, we'll cover the most commonly missed tax-saving opportunities in 2025/26, from overlooked expenses to smarter ways of taking income.
1. Your home office — yes, even your rent or mortgage interest
If you work from home, you can claim a portion of:
- Rent or mortgage interest
- Council tax
- Utilities
- Internet and phone bills
- Cleaning costs
The amount depends on how many rooms you use and how often you work there. If you don't want to calculate exact figures, HMRC allows a flat-rate 'simplified expenses' method — £10–£26/week depending on hours worked.
Common mistake: Claiming just £6/week (HMRC's minimal "default") when you could be claiming £1,000+ per year on actual costs.
2. Your phone bill — even if it's a personal contract
You can claim a percentage of your mobile phone bill based on how much you use it for work. That includes:
- Client calls
- Business emails or WhatsApp
- Social media marketing
Tip: Keep a rough log for a week to estimate your business use — even 50% of a £40/month bill is £240 a year.
3. Equipment, software and subscriptions
These are 100% deductible if used for your business:
- Laptops, printers, microphones, monitors
- Adobe Creative Cloud, Notion, Canva, ChatGPT Plus
- Web hosting, domain names, stock images or fonts
Tip: Items that last several years (like laptops) may need to be claimed under capital allowances or AIA — but you still get full tax relief in most cases.
4. Clothing (sometimes)
Most clothing isn't deductible — unless it's protective or branded.
You can claim for:
- Steel-toe boots, high-vis jackets
- Branded workwear
- Costume or uniform for specific roles (e.g. performers)
Not allowed: Normal clothing, even if worn only for work.
5. Travel — including food on the go
You can claim travel costs when visiting clients, events, or jobsites:
- Train, tube, bus or taxi fares
- Mileage (45p/mile up to 10,000 miles)
- Hotel stays
- Subsistence (meals while travelling)